Your exit entitlement is the amount the operator must pay you when you leave the retirement village.
The timing and calculation of this payment depend on your residence contract and the legislation.
When your exit entitlement is paid
In most villages, your exit entitlement becomes payable once your residence has been relicensed.
Some villages may offer payment within a specific timeframe set out in your contract.
By law, the operator must pay your exit entitlement no later than 12 months and 30 business days after you provide vacant possession, even if the residence has not yet been relicensed.
This requirement does not apply if:
- you decide to wait until the residence is relicensed, or
- SACAT grants the operator an extended repayment period due to special circumstances.
Once your entitlement becomes payable
When your exit entitlement becomes payable, the operator must:
- take all reasonable steps to pay you within 10 business days, and
- if they request your payee details, pay you within 10 business days after both:
- the entitlement becomes payable, and
- you have provided your payee details.
You may request an estimate of your exit entitlement from the operator at any time.
Capital replacement fund deduction
Your residence contract will specify whether the operator can deduct an amount for the village’s capital replacement fund. The law establishes a cap on how much an operator can deduct, even if a higher amount is specified in your residence contract.
Contracts entered into before 2 February 2026
The operator may deduct up to 12.5% of the current market value of the residence.
Contracts entered into on or after 2 February 2026
The operator may deduct the lesser of:
- 1% of the current market value, multiplied by the number of years (including part‑years) you lived in the residence, or
- 12.5% of the current market value.
If your contract specifies a lower amount
This is a cap on the amount that can be deducted. If your contract provides for a lesser amount to be deducted, then the lesser amount will apply.
